Reuters Finance News, New Zealand |
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NZ dollar recoups some losses after Fonterra auction
Wednesday November 4, 2009, 7:16 am
* Kiwi around $0.7194/99, compared with $0.7214/17 in late local trade on Tuesday, after bouncing between an offshore low of $0.7092 and a high of $0.7238. * Kiwi boosted after Fonterra, NZ's top export earner, reported another rise in dairy prices at its latest auction, up 13.7 percent, pointing to a strengthening in demand. [ID:nWEL459929] * U.S. dollar rises to a one-month high against a basket of currencies as concerns about the global banking sector and equity losses re-ignite safe-haven demand for the greenback. * Investors trim risky positions as European and Wall Street shares fell on poor results from UBS UBSN.VS and a shake-up of UK banks Lloyds LLOY.L and Royal Bank of Scotland RBS.L * NZ dollar still below A$0.80 against the Aussie NZDAUD=R after the Reserve Bank of Australia's decision to raise rates by 25 basis points to 3.50 percent on Tuesday, as expected. * But fears of a rapid widening of the yield gap between NZ and Australia eased after the RBA said it expected to gradually lessen its stimulus of the economy, and was careful not to fuel expectations for another hike in December. [ID:nSYD339317] * Kiwi flat against the euro NZDEUR=R and the yen NZDJPY=R, keeping the trade-weighted index =NZD steady. * Markets cautious ahead of central bank meetings in Britain, Eurozone and the United States, along with U.S. non-farm payrolls at the end of the week. * Kiwi seen supported near term at $0.7100 with resistance at $0.7270. * NZ bonds a touch softer, while the U.S. government securities prices slid as traders prepared themselves for Wednesday's Treasury refunding announcement and a statement from the Federal Reserve on monetary policy. |
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